The liquidation process is expected to start as soon as Friday, pending bankruptcy court approval, Borders said in a press release.

Mike Edwards, president of Borders Group, said in a written statement that he was saddened by the development and that the decision came despite "the best efforts" of all parties.

"We were all working hard towards a different outcome, but the headwinds we have been facing for quite some time, including the rapidly changing book industry, eReader revolution, and turbulent economy, have brought us to where we are now," Edwards said.